Nikkei Singapore PMI falls to 50.2 in Oct as business conditions stagnate

BUSINESS conditions seemed to be stagnating as new business orders and employment fell in October, according to the Nikkei Singapore Purchasing Managers' Index (PMI).

The headline PMI was at 50.2 in October, down from September's 51.4. It registered 50.8 in August.

Readings above 50 signal an improvement in business conditions from the previous month, while readings below 50 show a worsening.

Markit, the financial information services provider which compiles the index, said in a release on Wednesday morning: "This signalled only a fractional improvement in overall operating conditions in the Singaporean private sector economy, and the weakest growth in the current five-month upturn."

The Nikkei Singapore PMI covers a wider range of sectors and more companies than an existing PMI compiled by the Singapore Institute of Purchasing and Materials Management (SIPMM). The latter covers only the manufacturing sector.

SIPMM's PMI showed a reading of 48.9 in October, contracting for the fourth month in a row, but a slightly better outlook than September's 48.6.